Port Congestion surcharge - or CMA-PCSO

The Port Congestion Surcharge at Origin (CMA-PCSO) is a specialized fee implemented to address the additional costs and challenges associated with port congestion at the origin of a shipment. Port congestion occurs when a port's infrastructure is overwhelmed by the volume of cargo, leading to delays and inefficiencies in loading and unloading operations. This surcharge is levied by the shipping line, in this case, CMA CGM, and is paid by the shipper or freight forwarder who is responsible for the initial leg of the cargo's journey.

The rationale behind this surcharge is to compensate for the increased operational costs that arise during periods of congestion. These costs may include extended vessel waiting times, higher labor expenses due to overtime, and the need for additional equipment to manage the backlog of shipments. The surcharge is typically applied per container and can vary depending on the severity of the congestion and the specific port involved.

It is crucial to differentiate the Port Congestion Surcharge from other fees such as Terminal Handling Charges or Demurrage Fees, which pertain to different aspects of port operations. While Terminal Handling Charges cover the cost of moving containers within the port, the Port Congestion Surcharge specifically addresses the systemic delays and inefficiencies caused by congestion.

From a practical standpoint, shippers and freight forwarders should be mindful of potential surcharges when planning shipments from congested ports. It is advisable to maintain open communication with carriers to stay informed about any anticipated congestion surcharges, as these can impact overall shipping costs and delivery timelines. By understanding the operational context and financial implications of the CMA-PCSO, logistics professionals can better navigate the complexities of international shipping.